Appointment Rules

  • Governed by Banking Regulation Act.
  • Requires RBI approval in cases.
  • Controlled by Companies Act.
  • Independent auditor selection.
  • Periodic rotation required.

Scope of Audit

  • Review of financial statements.
  • Examination of compliance.
  • Checking of asset quality.
  • Verification of capital adequacy.
  • Monitoring liquidity positions.

Regulatory Oversight

  • RBI issues audit guidelines.
  • ICAI sets auditing standards.
  • SEBI monitors listed banks.
  • Joint supervision in critical cases.
  • Annual regulatory inspections.

Accountability Measures

  • Liable for misstatements.
  • Penalized for negligence.
  • Subject to disciplinary action.
  • Can be removed by regulators.
  • Bound by strict ethics code.

Disclosure Obligations

  • Submit reports to regulators.
  • Highlight irregularities.
  • Provide transparency to shareholders.
  • Certify compliance with laws.
  • Recommend corrective actions.